Cisco's Strategy in Recessionary Times
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Case Code: BSTR373 Case Length: 16 Pages Period: 2000-2010 Pub Date: 2010 Teaching Note: Not Available |
Price: Rs.400 Organization: Cisco Systems Inc. Industry: IT, Networking Equipments Countries: US Themes: Corporate Strategies |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Cisco during Recession
In late October 2008, Cisco faced a reduced demand for its products in the US. The company forecasted that it would face challenges in markets like Asia and Europe too. At that time, Chambers announced that Cisco would take appropriate action proactively to face the downturn and adjust its strategies according to the changing situation...
Organization Structure
After the crisis in 2001, Cisco realized that one of the reasons for its problems was its hierarchical structure. According to Chambers, "In 2001, we were like most high-tech companies, with one or two primary products that were really important to us...
Partners and Customers
Cisco made efforts to assess how big the recession and its duration would be and to plan accordingly. The company viewed the recession as an opportunity to move closer to the customers and partners....
New Products and Markets
In spite of the recession, Cisco continued to acquire several companies (Refer to Table IV for Cisco's acquisitions during 2008 and 2009). The company entered sectors like sports and entertainment, electricity grids, consumer networking, etc...
Looking Ahead
Even in recessionary times, Cisco looked at expanding into new markets. The company predicted an annual growth of between 12% and 17% till the year 2015. It always developed its business strategies with a long-term perspective, irrespective of the macro-economic conditions...
Exhibits
Exhibit I: Cisco Systems - Quarterly Financial Statement
Exhibit II: Cisco Systems - Acquisitions (1994-2007)
Exhibit III: Cisco Systems - Three Year Financial Statements (2007- 09)
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